Don’t leave your MPF to gather dust: review it every six to twelve months

This article is a rewrite of a report from January 2012.

With Lunar New Year approaching, Ah Chik helped his aunt with the festive clear-out and found a stack of unopened letters — one of them an MPF annual benefit statement her trustee had sent months earlier. His advice was blunt: MPF is one of your most important retirement reserves, so don’t neglect it. Review it every six to twelve months.

How often should members review their MPF investments?

MPF is a long-term investment, but that is no excuse to ignore it. Reviewing MPF investments every six to twelve months is the safe habit; use the trustee’s annual benefit statement — issued at least once a year — to check the past year’s contributions from you and your employer, the fund values at the scheme’s financial year-end, and the gains or losses for the period and since the account opened, then decide whether the portfolio needs adjusting.

Trustees also provide a fund fact sheet at least every six months, with the latest details on your chosen funds: investment objectives, top-ten holdings, fund performance and risk indicators. With that information you can judge whether the portfolio still matches your investment goals.

What should a review consider? Changes in age, career or family circumstances all affect how much risk you can bear, and they belong in the review. But remember MPF is long-term: never switch funds rashly on short-term market swings. Note too that switching involves a brief investment gap — accrued benefits sit in no fund at all — during which market movements can produce a “sell low, buy high” outcome. The MPFA advises making investment decisions around personal needs and risk tolerance; that is always the soundest approach. The MPF education hub has guides on managing your account.